WHITE PLAINS—Low-cost hydropower from the New York Power Authority’s
(NYPA) Niagara Power Project will help to create 60 jobs in Western New
York, in connection with plans by a pharmaceutical company to expand two
production facilities in Grand Island, and the construction of a new
manufacturing plant in Cheektowaga for outlet strips and transformers.

The Power Authority Board of Trustees Tuesday approved two allocations
of power, totaling 2,200 kilowatts (kw), for American Pharmaceutical
Partners (APP), Inc., and Hammond Manufacturing Co.

“The new jobs will result from multimillion dollar capital investments
by the two companies, which New York State is supporting with low-cost
hydropower,” said Louis P. Ciminelli, NYPA chairman. “We full recognize
the importance the Niagara Project plays as an engine for job growth in
Western New York, and these three latest allocations reflect that.”
Ciminelli, a Buffalo resident, noted that the allocations will come from
a 445,000-kw block of power known as replacement power, reserved for
businesses within a 30-mile radius of the project switchyard. Together
with a second, 250,000-kw block of Niagara electricity called expansion
power, the two amounts are awarded on a competitive basis and linked to
more than 43,000 jobs on the Niagara Frontier.

The Western New York Advisory Group, consisting of the Power Authority,
Niagara Mohawk, Empire State Development Corp. and the Buffalo Niagara
Enterprise, recommended the allocations to American Pharmaceutical and
Hammond Manufacturing. In 2003, the members of the group signed a
Memorandum of Understanding for allocations of available Niagara power
on a continuous basis to maximize the economic development benefits of
the 2,400,000-kw hydroelectric project.

“We continue to forge ahead in spurring Western New York job growth
under Governor George E. Pataki’s leadership, as demonstrated by these
latest power allocations,” said Ciminelli. “Since the agreement for the
continuous allocation of Niagara power, we’ve received commitments to
create more than 2,200 jobs in the region.”

American Pharmaceutical, which will receive 2,000 kw, manufactures and
markets injectable pharmaceuticals, including those for treatment of
cancer and infectious diseases. The company is undertaking capital
investments of nearly $34 million in its Grand Island operations.

At one of the facilities, on Lang Boulevard, new biologic processing
equipment will lead to 25 additional jobs.

A second APP facility, on Staley Road, will be the site of a new
45,000-square-foot packaging building. The company also plans to expand
its syringe-filling capabilities, with the various investments resulting
in another 25 jobs at the site, where 481 people now work.
Hammond Manufacturing, which will receive 200 kw, is investing more than
$1 million in a new 20,000-square-foot manufacturing plant, moving a
small portion of its Waterloo, Ontario, operations to Cheektowaga. Some
14 jobs will be transferred, with the company planning to create another
10 jobs at the facility, whose manufacturing equipment will include
molding machines, jib cranes, vacuum loaders, grinders and chillers.

The New York Power Authority is the largest state-owned public power
organization in the country, providing some of New York’s lowest cost
and cleanest electricity.